A USDA loan calculator estimates the monthly payment on a zero-down USDA guaranteed mortgage, including the upfront guarantee fee and the annual fee. Formula: Loan = price × (1 + upfront fee); payment = PMT(loan, rate, term) + loan × annual fee ÷ 12. For a $280,000 home at 6.25% over 30 years, the 1% fee makes the loan $282,800, principal and interest is $1,741.25 and the annual fee adds $82.48, for $1,823.73 a month.
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How to use the USDA loan calculator
- Enter the purchase price. USDA guaranteed loans need no down payment.
- Enter the interest rate and the term, normally 30 years.
- Keep the upfront fee at 1% and the annual fee at 0.35% for fiscal year 2027, unless your Conditional Commitment shows different numbers.
The USDA loan calculator shows the loan after the fee, principal and interest, the monthly share of the annual fee and the total. Taxes and homeowners insurance are not included.
USDA guarantee fees for fiscal year 2027
USDA Rural Development announced that for FY 2027, which runs from October 1, 2026 to September 30, 2027, the upfront guarantee fee is 1.00% and the annual fee is 0.35% for both purchase and refinance loans. The rate that applies is set by the date USDA issues the Conditional Commitment, not the closing date. Federal rules cap the upfront fee at 3.5% and the annual fee at 0.5%, so the fees can change in a later year.
What formula does the USDA loan calculator use?
- Loan amount = price × (1 + upfront fee). The 1% fee can be rolled into the loan.
- Principal and interest = standard amortizing payment on that loan.
- Monthly annual fee = loan × 0.35% ÷ 12.
USDA charges the annual fee on the average scheduled unpaid balance, so the real fee falls a little each year. The USDA loan calculator uses the starting balance, which gives the first-year figure.
USDA loan calculator worked example
Results from the USDA loan calculator with FY2027 fees:
| Price and rate | Loan with fee | Principal and interest | Annual fee per month | Total |
|---|---|---|---|---|
| $200,000 at 6.25% | $202,000 | $1,243.75 | $58.92 | $1,302.67 |
| $280,000 at 6.25% | $282,800 | $1,741.25 | $82.48 | $1,823.73 |
| $350,000 at 6.50% | $353,500 | $2,234.36 | $103.10 | $2,337.46 |
Costs the estimate leaves out
Your actual monthly housing payment will also include property taxes and homeowners insurance, which lenders usually collect through escrow. Add both to the total shown to get a realistic budget figure. You will also pay closing costs, although USDA allows lenders to finance the price and typical closing costs up to the appraised value, and the guarantee fee may be financed even above that value.
Rates vary by lender, so get Loan Estimates from more than one approved USDA lender on the same day and compare the APR as well as the rate. Each Loan Estimate should list the guarantee fee as a separate line.
Who is eligible?
The guaranteed program is for low- and moderate-income buyers in eligible rural areas, and the home must be your primary residence. Income limits and the property map are set by USDA and checked by the lender. The calculator does not test eligibility; it only estimates the payment once you know you qualify.
Common mistakes to avoid
Common mistakes: using the purchase price as the loan amount and forgetting the guarantee fee, leaving out taxes and insurance, and assuming every rural-looking address is eligible. Check the property address and household income with an approved lender early, before you make an offer. The annual fee figure here is the first-year amount, and it drops slowly as the balance is paid down.
USDA versus FHA
Both programs charge an upfront and an ongoing fee. USDA’s 0.35% annual fee is low, and there is no down payment, but the area and income limits rule many buyers out. Run the same price through our FHA loan calculator and compare it with the USDA loan calculator result before you choose a lender.
Estimates for education only, not tax, legal or financial advice. Check current rules with the tax authority or a qualified adviser.
Related converters and calculators
Related calculators:
- FHA loan calculator: FHA payment
- VA mortgage calculator: VA payment
- Mortgage calculator: conventional payment
Sources
USDA Rural Development: Fiscal Year 2027 Conditional Commitment Notice; eCFR: 7 CFR Part 3555, Guaranteed Rural Housing Program.
Questions about this calculator
What are the USDA fees for 2027?
For fiscal year 2027, a 1.00% upfront guarantee fee and a 0.35% annual fee on purchase and refinance loans.
Can the upfront fee be financed?
Yes. The 1% guarantee fee can be rolled into the loan, as the calculator assumes.
Does a USDA loan need a down payment?
No. Guaranteed loans can finance 100% of the price for eligible buyers.
Which year's fee applies to my loan?
The fiscal year in which USDA issues your Conditional Commitment, not the closing date.
Is the annual fee charged for the life of the loan?
Yes. It is charged on the average scheduled unpaid balance for as long as the loan is guaranteed.
Check the assumptions and units before relying on a result. Financial, tax and health estimates do not replace advice for your individual circumstances.
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